Westpac breaks insurance deadlock in Christchurch
Westpac has broken Christchurch’s insurance deadlock with policies for new construction and full replacement home and contents policies.
The lack of available insurance has left hundreds in limbo and unable to get on with rebuilding their lives after the earthquakes. To overcome that, Westpac and partner, Lumley Insurance, has secured international reinsurance backing. Westpac hopes, by being the first major financial institution in New Zealand to do so, it will help open up the market.
Westpac Managing Director Private, Wealth and Insurance, Simon Power, said customer feedback was the driver in persevering to put the ‘Canterbury New Build Pac’ together.
“We have listened to the frustration and anguish many of our customers have experienced through the lack of available insurance to build a new home and have been determined to find a practical solution,” Mr Power said.
“Now, not only do we hope this helps people move on but it also goes some way to opening up the market.
“Dealing with the issues that have arisen from the earthquakes has required thinking outside the square and what we’ve done here is create an end to end solution so people can get out of no man’s land and get on with their lives with confidence.”
The ‘Canterbury New Build Pac’ combines a Westpac Home Loan, transactional account and Contract works and Home cover and is for new and existing Westpac customers who are ready to start on residential builds or purchase new residential builds in Canterbury, and have all appropriate consents but have not progressed due to being unable to secure insurance cover.
Contract works cover, which is included in the Pac, is for a maximum period of 12 months and includes protection from natural disasters and earthquakes.
Home cover will be on a ‘sum insured’ basis meaning customers insure for full replacement, up to the specified value. Sum insured is common overseas and is expected to become the norm here after the earthquakes changed the country’s risk profile in the reinsurance market.
- Limited availability
- For new and existing Westpac customers
- For new Residential builds only, not for rebuilds
- Special terms, conditions and pricing will apply
- Each application will be individually underwritten and subject to acceptance and approval